We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 06, 2019
Read MoreHide Full Article
Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.
High fees coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every day.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Leader Total Return C : Expense ratio: 2.96%. Management fee: 0.75%. After expenses, the 5 year return is 0.25%, meaning your fees are far higher than the fund's returns.
Brandes International Small Cap Equity A (BISAX - Free Report) . Expense ratio: 1.36%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of -1.94%.
Janus Henderson Diversified Alternatives T - 1.29% expense ratio, 1% management fee. This fund has yielded yearly returns of 1% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Virtus KAR Small Cap Sustain Growth I (PXSGX - Free Report) is a winner, with an expense ratio of just 1.11% and a five-year annualized return track record of 22.61%.
Nationwide Growth Fund IS (NGISX - Free Report) : Expense ratio: 0.76%. Management fee: 0.6%. NGISX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. NGISX has managed to produce a robust 12.01% over the last five years.
Hartford Core Equity R3 (HGIRX - Free Report) is an attractive fund with a five-year annualized return of 11.6% and an expense ratio of just 1.09%. HGIRX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
Image: Bigstock
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 06, 2019
Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.
High fees coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every day.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Leader Total Return C : Expense ratio: 2.96%. Management fee: 0.75%. After expenses, the 5 year return is 0.25%, meaning your fees are far higher than the fund's returns.
Brandes International Small Cap Equity A (BISAX - Free Report) . Expense ratio: 1.36%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of -1.94%.
Janus Henderson Diversified Alternatives T - 1.29% expense ratio, 1% management fee. This fund has yielded yearly returns of 1% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Virtus KAR Small Cap Sustain Growth I (PXSGX - Free Report) is a winner, with an expense ratio of just 1.11% and a five-year annualized return track record of 22.61%.
Nationwide Growth Fund IS (NGISX - Free Report) : Expense ratio: 0.76%. Management fee: 0.6%. NGISX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. NGISX has managed to produce a robust 12.01% over the last five years.
Hartford Core Equity R3 (HGIRX - Free Report) is an attractive fund with a five-year annualized return of 11.6% and an expense ratio of just 1.09%. HGIRX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
If you have $500,000 or more to invest and want to learn more, click the link to download our free report, 9 Retirement Mistakes that will Ruin Your Retirement.